The major advantage of a market economy is that
A)it maximizes the need for resource-flow data
B)prices convey most of the information necessary to coordinate economic activity among firms
C)data are aimed at central planners
D)prices are essentially meaningless
E)All of the answers are correct

Question

Quizplus · Accepted Answer

Prices in a market economy serve as signals and provide information to firms regarding consumer demand, production costs, and resource scarcity. This information helps to coordinate economic activity among firms in a decentralized manner, without the need for central planning.

The Major Advantage of a Market Economy Is That